HB289 Summary

• Prohibits the Department of Revenue from charging counties and municipalities for filing, payment processing, and remittance services related to taxes filed under the ONE SPOT system.

• Reduces the maximum cost recovery charge the Department of Revenue can impose on counties from 5% to 2% of collected revenue, matching the existing 2% cap for municipalities.

• Extends the required notification period for new or changed local tax levies from 30 days to 60 days prior to the effective date, allowing more time for proper rate updates.

• Provides liability relief for vendors and taxpayers who incorrectly collect local tax rates due to the Department of Revenue's failure to properly update published rates, effective March 1, 2017.

• Defines "collection and administration" as managing local taxes and includes functions such as receiving, reconciling, processing, auditing, assessing, collating, and distributing local taxes.